Hayes Lemmerz to launch $150 million exit financing on Wednesday

By Sara Rosenberg

New York, Nov. 17 - Hayes Lemmerz International Inc. is scheduled to hold a bank meeting on Wednesday to launch its proposed $150 million term loan, according to a market source.

Deutsche Bank is the lead bank on the deal.

Price talk on the term loan is Libor plus 800 basis points with a 2% Libor floor and an original issue discount that is still to be determined, the source said.

Proceeds will be used for exit financing.

Earlier this month, the company's plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware.

The confirmation order is conditioned upon the company obtaining exit financing of $100 million.

Through the plan, Hayes Lemmerz's total consolidated pre-petition funded debt of roughly $720 million is expected to be reduced to about $240 million upon emergence from Chapter 11.

The company expects to emerge from bankruptcy no later than December.

Hayes Lemmerz is a Northville, Mich., maker of automotive and commercial highway wheels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.